The Organisation for Economic Co-operation and Development is revising its guidelines for corporate governance of state-owned enterprises, which give advice on effective management to make state-owned enterprises more competitive, efficient, and transparent. IFAC is involved in the revision process and has offered some recommendations. What do you think should be revised and recommended?
Good risk management and internal control is good management—not compliance. With the increased volatility in the modern business environment and the financial and economic crises, the effective application of risk management and internal control in organizations has taken on even greater importance.
An important driver of business performance, as well as one of the best defenses against business failure, is having effective risk management and internal control. Successful organizations know how to take advantage of opportunities and counter threats through risk management and internal control, thereby improving their performance. Many standards, guidelines, and resource centers are available to assist professional accountants, and their organizations, to establish more effective risk management and internal control. However, these resources are not aligned with each other.
The Organisation for Economic Co-operation and Development is about to start revising its principles of corporate governance, a process IFAC is involved with and has made recommendations on.
On May 14, 2013, the COSO issued the revised version of its Internal Control-Integrated Framework to help improve implementation of internal control but further adjustments are warranted to align internal control across the globe and to help organizations better manage their risks and improve their overall performance.
Integrating Governance for Sustainable Success, a new report from the IFAC Professional Accountants in Business Committee, argues that effective governance should not just be about protecting stakeholders' interests, or a compliance exercise to satisfy the requirements of regulators. Instead, effective governance should support building sustainable value in organizations and society. Integrated governance helps an organization achieve this lasting success.
In this brief video presentation, International Integrated Reporting Council (IIRC) technical director and IFAC staff member, Michael Nugent, introduces the Consultation Draft and explains why it is so important. See IFAC's comment letter on the Consultation Draft for additional information.
High-quality internal and external reporting is critical for all organizations. High-quality reports promote better internal decision making and high-quality information is also integral to the successful management of any organization.
The 25 prominent business leaders from across the globe who were interviewed for IFAC's Integrating the Business Reporting Supply Chain project provided perspectives with regard to business reporting.
A recent trip to China left me both impressed and depressed, and more aware than ever that environmental problems there belong to the entire world. Since my last visit, more than 20 years ago, the country has propelled itself from a primarily agricultural nation into an economic superpower. We are all aware of the continuous stream of double-digit growth figures but traveling through the country gives you a better idea of how this translates in actual changes in living conditions for the Chinese—an unprecedented scale!